Commissioner outlines new taxpayer rights and tax preparer regulations in Connecticut

Connecticut's House Bill 7270, introduced on April 3, 2025, aims to overhaul the state's tax dispute resolution process, significantly impacting taxpayers and tax preparers alike. The bill seeks to streamline how taxpayers can contest decisions made by the Commissioner of Revenue Services, ensuring greater transparency and efficiency in the appeals process.

One of the bill's key provisions mandates that taxpayers receive a detailed notice outlining the commissioner's findings and the basis for any adverse decisions. This change is designed to enhance clarity and accountability, allowing taxpayers to better understand the rationale behind tax determinations. Additionally, the bill establishes a one-month window for taxpayers to seek judicial review of the commissioner's decisions, a move that could expedite the resolution of disputes.

The legislation also introduces new protocols for tax preparers, allowing the commissioner to suspend or revoke permits for good cause. Tax preparers will have the right to request a hearing within 30 days of receiving notice of such actions, ensuring they have a fair opportunity to contest decisions that affect their professional standing.

While the bill has garnered support for its potential to improve taxpayer rights and streamline processes, it has not been without controversy. Critics argue that the expedited timelines may not provide sufficient opportunity for thorough review, potentially disadvantaging taxpayers who require more time to prepare their cases. Proponents, however, assert that the changes will ultimately lead to a more efficient tax system, reducing backlogs and improving service delivery.

The implications of House Bill 7270 extend beyond procedural adjustments; they could reshape the landscape of tax compliance and dispute resolution in Connecticut. As the bill moves through the legislative process, stakeholders are closely monitoring its progress, anticipating that its final form will reflect a balance between efficiency and fairness in tax administration. If passed, the new regulations will take effect on July 1, 2025, marking a significant shift in how tax disputes are handled in the state.